Mortgage Lenders Blog and Resources

It’s the most wonderful time of the year, right? But it doesn’t always feel that way.  Perhaps you’re running around, taking kids to activities, trying to get holiday shopping done, among all your other responsibilities, and you may be feeling less than merry and bright. But amongst all your responsibilities, activities, and parties, you can make sure that your home is a peaceful place where you can enjoy the holidays. No matter the size or location of your home or whether you rent or own, there are steps you can take to create space for the feelings of peaceful contentment you crave. Implement one or more that resonates with you and you'll be on your way to minimizing stress and maximizing calm. 1. Take the first step and momentum will follow Once you can conquer an area that impacts your daily life, you will feel more motivated to continue. Begin with what you can see. Usually, this means desktops, dressers, and tables. Once those areas are decluttered, you can move into other spaces. Keep a focused mind on the (attainable) goals. Know and remind yourself that this endeavor is something that you are doing for yourself and that you’re worth this effort. — Adina Mahalli, mental health consultant and family care specialist with Maple Holistics 2. Create a positive association I like to pair cleaning or decluttering with something I enjoy, whether it be a favorite Christmas movie playing in the background or grabbing a seasonal Starbucks latte before beginning the process to keep me motivated. — Mary Cornetta, founder and co-owner of organizing company Sort & Sweet Inc. 3. Make it a game A fun way to tidy up with kids is to set a time and play Beat the Clock. Tell everyone they have two minutes (or 10 minutes, 30 minutes, etc.) to put things in their proper place in the home. If the game isn’t motivation enough, say there is a special treat in store when the job is complete, such as a family movie night or a special snack. — Eileen Roth, organizing expert and author of Organizing For Dummies 4. Invest in a guided system As we move into a new year with new goals, a Decluttering Binder would be a wonderful gift for any mom who wants to learn how a little bit of decluttering every day can add up to big results. Packed with 46 pages of decluttering tasks, tips and tricks, age-appropriate tasks for little ones, and tips to keep the experience positive, it’s a perfect solution to keeping your home tidy and company ready without the hustle and stress of all-day cleaning. — Jen Slezia, owner and creator of Journals to Freedom Printables 5. Clear a closet Closets are an area that people often forget about. More often than not, you find tons of useless things in your closet that you are never going to use. So leave behind the mentality of “I’m going to use it in the future.” You probably won't. So free your closet and get the extra space to keep the clutter to a minimum. — Abe Navas, general manager of Dallas-based house cleaning service Emily’s Maids 6. Give everything a home The holidays bring with them stuff that only hangs around for a couple of weeks or months, but that doesn't mean the same rule doesn't apply. Extra coats and shoes from visitors and winter gear need a place to live. Hang a few sturdy removable hooks for extra coats and clear a spot on the floor for an old towel to use as a shoe spot. 7. Purge your pantry The holidays are famous for food, and that means extra ingredients in our pantry, freezer, and fridge. Pre-purge the two-years-old dressing, unopened impulse-buy muffin mix, and tragic freezer-burnt burger patties now. This is a great time of year to get rid of non-expired shelf-stable items too, as there are a lot of food drives going on. You'll be amazed at how easily you'll breathe opening your cupboards in the new year. — Brittany Finkelstein, stress and workplace resilience coach 8. Donate your stuff A worthwhile activity you can enjoy with your child is to create a pile of things you can give to other kids that might not have as many nice things to wear or play with. Making room for new toys is practical but even better is the teaching opportunity of redirecting their attention from getting to giving — a task they can be proud of. — Sherri Monte, co-owner of interior design and organizing firm Elegant Simplicity 9. Sell your stuff One great resource that helps you clear out old items from your home is Decluttr, which sells your electronics for you. This is an environmentally responsible option to consider when you’re done with old technology, DVDs, CDs, and other electronics. Once they give you an offer, you accept, and they provide the shipping box and paid label at no cost to you. Everything is done for you and you actually make money decluttering your home! — Jeff Proctor, cofounder of DollarSprout 10. Give experiences  Giving stuff just to give isn’t really productive for anyone. Think seriously about where the people you are giving to are at in their lives. Are they trying to cut down on stuff or do they already have a houseful of stuff? Are they trying to live a more minimalist life? Consider giving items that will help make a person’s life easier. Think about giving an experience rather than an item — movie, play or concert tickets, a date night, a fun kid day out like a trampoline park, a membership to a science or art center or possibly a gift card to a restaurant. The best memories are made doing things together rather than getting material items. — Marty Basher of custom closet module company Modular Closets 11. Give consumables If I want to give something tangible — because almost everyone likes to open something! — I try to give consumable gifts like wine or candles versus ones that will live in their home forever (there is a limit to how many throw blankets someone can have). — Mary Cornetta 12. Consider regifting I'm a big advocate of re-gifting. Not only is it better for the environment, but it also cuts down on costs for you and it encourages the recipient to do the same. For example, I will re-gift all the books I read and the puzzles that I did within the year. This helps me de-clutter and allows the next person receiving it to do the same. — Lauren Cook, MMFT, therapist, and author 13. Set a limit We keep our gifts to three items per kid. If it was good enough for the wise men, it works for us, too. Generally, it's a toy, some clothing, and a book or game. Ideally, a few of the items can be enjoyed for hours at a time by more than one kid over the days off from school. Be very selective about the electronics you give your kids. You will have to charge, add batteries, troubleshoot, repair, and eventually recycle each item. If you do bring in a new electronic item, immediately label the cord descriptively with label tape or masking tape and collect accessories and instructions in a plastic zipper bag, also well-labeled. — Darla DeMorrow, certified professional organizer® and owner of HeartWork Organizing 14. Trap the wrap If you celebrate part of the season with a big present unwrapping, add two things to the room: a trash bag and a recycling bag. Ribbons, bows, and paper can all go straight into the right place, as can any toy packaging that is immediately relegated to the heap upon receipt. — Brittany Finkelstein 15. Repurpose cards Sift through the holiday cards you receive and reuse cute cards by cutting images from the front, attaching string, and using them as gift tags for next year. Throw the ones you don’t want to save in the recycling bin. — The team at Molly Maid, a Neighborly company 16. Select ornaments with purpose Our tree is not large, live, or trendy, but it's very, very special. We have always bought ornaments on our summer travels and now our tree is made up entirely of these memory-based ornaments. It's a great way to remember special trips and places we have been to. — Darla DeMorrow 17. Limit what you store Invest in good storage totes and make a promise to yourself that you’ll keep only what fits into the totes you have. This will help keep you from collecting more items each year without assessing what you have each time. — Marty Basher 18. Donate decorations This is exactly the time of year when you can donate seasonal decor and know it will go to someone who will use it this season or next. Bring out all your holiday decorations and sort through them, looking for decorations that are in good shape but that you don’t absolutely love. Once the holidays are over, evaluate each decoration before storing it. Do you know someone else who would be thrilled to enjoy it next year? — Jamie Novak, expert organizer and author of "Keep This Toss That" 19. Pack and store decor safely For Chanukah, make sure to remove wax from candle holders before storing. For Christmas ornaments, store them in a thick box and make sure to wrap each one neatly with packing paper. To ensure no movement in the box, pack them tightly! Finally, clearly label all boxes for more efficient storage in the off-season and unpacking next holiday season. — Lior Rachmany, CEO of NYC-based Dumbo Moving + Storage 20. Take shortcuts when you can Although I love to bake, I just don't have the time in a week with three company holiday parties. For just $30 I picked up a beautiful Tiramisu from my corner French bakery. I support my favorite small business and get to bring something much fancier than I can whip up at home, saving me time in the bargain. — Darla DeMorrow 21. Drop the need to impress The holidays are about family, friends, and gratitude, not about impressing people with your impeccable housekeeping, rushing to get through home projects during your time off, or proving to the world that you can do it all. Your house is not a reflection of your worth as a person. If there's a bit more laundry or a pile on a table because you were finishing a Christmas play costume, building a gingerbread house, or sitting down with a cup of hot cocoa to watch Elf for the third time, ask yourself if it was worth the joy. You have 365 days in a year to do laundry and declutter; enjoy the few weeks where twinkling lights and free cookies are the norm, and managing the mess is expected to take a back seat to merriment. — Brittany Finkelstein 22. Find your “yeses” Moms everywhere run around like crazy trying to do a thousand things in order to make it all feel “special” for our families. But when we are overwhelmed, we end up feeling more like the Grinch than anything else. The holidays are a time of many, many event invitations: cookie exchanges, the neighborhood party, the office gift exchange...the list goes on and on. It’s not about saying no — it’s about identifying your yeses and prioritizing those over the things that don’t matter as much. Ask yourself: Who do I want to spend my holiday time with? What stories am I telling myself about what the holiday has to look like? — Tanya Dalton, productivity expert and author of "The Joy of Missing Out" 23. Schedule the fun If you're solely focused on getting through your to-do list before you enjoy the season, you'll find yourself at the end of the season before you've had any fun. Add tasks to your daily to-do list like watching a movie, enjoying hot cocoa, or driving around to view the neighborhood lights. By adding the item to your to-do list, you'll feel like you're accomplishing something when you cross it off — and you are. — Jamie Novak 24. Refuse to multi-task Be present no matter what you are doing whether that is cooking a meal, writing a holiday card, or visiting with a friend or loved one. Do one thing at a time and vow to stop rushing. When you wake up each morning, set an intention to be mindful and calm and to enjoy your day. Do not overcrowd your schedule. Say no to every request that is not a priority to the people and things on your list that matter most to you. — Lynell Ross, founder and managing editor of wellness advocate website Zivadream 25. Put people first Look one another in the eyes. It is so often that we are focused on our phones or another screen. Look up and look around. — Lauren Cook 26. Find an activity that centers you Five years ago, I was working 24/7 and looking for a way to unwind and decompress. Everyone was talking about meditation and Headspace, but it just didn't really work for me. Instead, I started doing jigsaw puzzles and fell in love with them. They became my nightly meditation and I made a habit of working on a puzzle for at least 20 minutes every night with tea. It calmed me, I slept better, and for at least those few minutes was fully present, focusing on just one thing, away from any screens. Puzzles are also a perfect family activity around the holidays to be connected and spend time together while doing something relaxing and healthy. — Kaylin Marcotte, founder and CEO of female artist-focused puzzle company JIGGY 27. Don’t neglect self-care Particularly during the busy holiday season, stress can creep in if you are tired, overloaded, or overworked. Whether you pause for a quiet cup of tea, take a break for a 10-minute meditation, or de-stress in a warm shower, give yourself the gift of daily self-care. You’ll feel better, more relaxed, and ready to handle the holiday bustle with a smile. — Dr. Carla Marie Manly, clinical psychologist and author 28. Simplify your play area If you're like me, you've probably accumulated a variety of dog toys and gear over the years, and chances are your dog doesn't use it all! Try keeping only the toys your dogs actually enjoys. For example, some dogs go nuts for squeaky toys. Others go bananas for rope toys. Stick with your pup's favorites and toss out the others! To make more space in your living area, you may want to consider a dog furniture crate for sleeping. These turn an end table or side table into your dog’s sleeping area! — Meg Marrs, founder of dog care hub K9 of Mine 29. Create a doggy oasis The excitement of new people, delicious food, and extra noise during the holidays can make your dog’s manners diminish. But if dogs are rushed into a room and left alone, it could lead to separation anxiety, excessive barking, or destructive behaviors. Consider creating a space just for doggy in a separate room to provide a comfortable, quiet space with toys and a treat to chew on. — The team at Zoom Room, a national indoor dog gym and training franchise 30. Set your dog up for success If you’re bringing home a newly adopted dog, understand that life as this pup knows it just drastically changed from the kennel to your home. Follow these tips to calm the chaos for your dog as much as possible: Provide a safe space or two where the pup can go in the beginning, like an appropriately sized crate. One can be placed in the central part of the home and the other in a more quiet area. Never force your pup to go into the crate or safe area, but make it very inviting with treats, blankets, toys, etc. so the pup enters of its own will. Leave the door open so they can enter or leave freely. Provide long-term appropriate chews, like bully sticks in a bully buddy, to help them relax. Chewing releases the relaxing chemical serotonin. Give the dog 3–4 weeks to break out of their shell, become familiar with their new surroundings and routine, and to trust you. If they’ve been in a shelter, they’ve been failed by humans before. Manage your expectations. Not all dogs came from a good home the first time around and they need time to learn that you are going to be their furever home — trust them, love them and treat them kindly! They’ve been through a lot! — Johnna Devereaux, Clinical Pet Nutritionist (CPN) for BowWow Labs

Guest Post by Brodie Gay, VP of Research at Unison Homeownership gives us a permanent place to call home, a roof under which we raise our families, and the potential for financial gain over time. But Americans are woefully over-indexing on their homes, and it's more than just "house rich and cash poor". Homes aren't nearly as stable a financial asset as many assume. Housing market volatility American homes are in fact as volatile in value as the stock market, as shown in the benchmark Unison Home Volatility Index. The index, which explored data pertaining to single-family, owner-occupied homes, found that homeowners entering very low down payment, high-leverage mortgages has led to increased risk when it comes to home price volatility. So, for the many Americans whose homes are the key anchor of their financial portfolios and retirement plans, there needs to be a new understanding of the reality of housing risk. The index shows that the average annualized volatility of home price appreciation has been around 15 percent per year since 2000 — only a single percentage point higher than U.S. equities index (14 percent), followed by U.S. high yield index (8 percent), and U.S. treasuries index (4 percent). Home volatility spiked to more than 35 percent per year in the midst of the 2008 financial crisis, suggesting that, similarly to equities and fixed-income securities, the financial risk of residential real estate is amplified during financial crises. The impact of housing volatility is important to understand, especially when it comes to matters of liquidity.; For example, a typical homeowner (net worth: $156,400) with most of their wealth ($95,800) tied up in home equity can’t access that capital for household expenses. A downturn in the housing market could cause a $200,000 home to drop in value to $100,000, meaning not only does the homeowner not see the increase in value generally assumed for homes, but they could be left upside down on a home they can no longer afford with only $60,600 in liquid assets — assuming those assets aren’t tied up in stocks, bonds or annuities. Perception vs. reality What’s especially troubling is the contrast between homeowners’ perceptions of home volatility and the reality of risk. Typical homeowners believe their household portfolio volatility to be around 9 percent, but due to a large amount of leverage that’s typically taken, in reality, it’s more than double (21 percent). Homeowners are betting big on their homes, but they don’t realize the actual risk. New homeowners are particularly vulnerable to housing market risk, the index found. This cohort traditionally has to take out a larger mortgage to purchase, and they haven’t had as much time to build equity in their home, and they’re also contending with mountains of student loans. They also often cash out their entire liquid portfolios for a downpayment, leaving little wiggle room for unexpected expenses like booking a last-minute flight or having an emergency medical procedure. To address this misalignment, it’s important for homeowners to understand how to fit their homes into overall financial planning. While diversifying your financial portfolio (between commodities, bonds, stocks, 401k, etc) is tried and true advice, homeowners need to factor their homes into their financial plans keeping the actual levels of volatility in mind. It is also important to note that a homeowner should never extend themselves too much when it comes to leveraging their home. While a homeowner might be able to afford a $400,000 house, a much safer bet would be to purchase a $350,000 using a larger down payment. Larger down payments mean more equity into the house. More equity into the house means less volatility risk. With new models like home co-investing, homeowners have the opportunity to re-allocate some of their investment into large, diversified institutional portfolios. With the average household holding 60 percent of their total financial portfolio in their home equity, the index shows that diversifying equity in this way can eliminate trillions of dollars in risk. The bottom line As our CEO Thomas Sponholtz has said: The home should be the place where you are most financially secure and conservative, so if you’re challenged with a life event or income shock, you can weather the storm and still have a place to call home. Today, your home is more of a roof over your head than an investment strategy. Yes, there are certainly significant financial benefits to owning a home. But these benefits are only available over the long term and to those who invest wisely in the home to begin with. If you’re the risk-seeking type, you are better off taking risk in your non-home investments. Brodie Gay is the Vice President of Research at Unison, a San Francisco-based company that is pioneering a smarter, better way to buy and own your home. We are a team of financial and real estate professionals who are committed to helping home buyers get the home they want, and homeowners finance their life needs without adding debt. For additional information, visit www.unison.com or follow us on Facebook, Instagram, LinkedIn, Twitter, and YouTube.

At Best Company, we believe better data leads to better decisions.  We recently performed an analysis of more than 480 1-star mortgage lender reviews, and have determined common themes and complaints from customers, providing you with reliable data to navigate choosing the best mortgage lender. The most common customer complaints include the following: Poor customer serviceLack of transparencySlow process or delaysLender errorsHigh rates or feesBorrower didn't qualify Because this is an overview of general complaints, all specific company and reviewer names are removed. To better understand a specific company’s feedback, read its reviews. Poor customer service — 56% Fifty-six percent of 1-star reviews mention poor customer support. What are the common complaints about customer service?   1. Company representatives were difficult to reach.  Calls and/or emails weren’t returned. Delayed response to calls and/or emails. Automated, rather than personal, responses. No response after an application was completed. No response after the applicant was denied a loan. Communication was poor between loan officers and underwriters. Communication was poor to other vendors like title companies and real estate agents. 2. Consumers didn't have a consistent contact point. Point of contact changed multiple times. Point of contact went on leave or vacation without telling the customer and failed to provide an alternate contact. 3. Company representatives weren’t on the same page. Customers continued to receive loan offers after their loan was denied. Customers were bombarded with loan offers, but communication was halted when an offer was pursued. Delays in re-verifying information over the phone. Multiple representatives within the same company asked for the same documents several times. 4. Company representatives were unhelpful.  Lacked training and knowledge. Provided incorrect or vague information. Rude communication. Local support was good; corporate support was bad — difficulties in escalating issues to higher ups. How can you avoid bad customer service? Test the system. You can test out more than one lender's customer service before committing. Call or email multiple lenders with your questions and see who responds first. If you’re having a hard time getting in touch with company representatives, this could be a good indication that you won’t have good experiences with customer service later on. Some things to consider: Which companies send you a personal response rather than an automated one? Which companies are available over the weekends? Which companies are willing to work with you on a holiday?  Be upfront.  Define and share your communication boundaries and expectations as you shop for a lender. If you know how you’d prefer to be communicated with, don’t be afraid to look for it and ask for it.  Some things to consider: How would you like to communicate? How would you like to be communicated with? How often do you want to be notified throughout the mortgage process? How quickly do you expect responses to emails, calls, or text messages?  Be understanding, within reason.  Though you may want to close as quickly as possible, keep in mind that your loan officer is a person too, and typically someone who is trying their best to do their job. Just like you, loan officers get sick, take vacations, and have families. Plus, they have other clients to assist. While this doesn’t excuse miscommunication or lack of communication, patience and understanding can go a long way. Provide all of your documents as quickly as possible.  Often, loan officers are waiting to complete the underwriting process because the borrower has not returned documents the loan officer has requested. The faster you can provide your loan officer with the required documentation, the faster you can get to closing. You should be prepared to provide the following documents: Tax returns W-2s or pay stubs (or any other proof of income) Bank statements Proof of assets Credit history Employment verification Lack of transparency — 41% Forty-one percent of 1-star reviews mention a lack of transparency. What are the common complaints surrounding lender transparency?   1. The lender didn't follow through on a promise.  A special offer was advertised but wasn’t honored. A company guarantee wasn’t backed. A lender credit amount at closing was promised, but it was decreased without notice. A waived payment option was offered, but was later denied. 2. The lender didn't adequately inform the borrower.  Private mortgage insurance (PMI) was added to a loan without explanation. Closing costs changed without notice. Loan requirements weren’t explained. Exact fees weren’t communicated upfront.  3. The lender was dishonest.  The agreement of sale was changed without notice. Fees were hidden or miscommunicated throughout the loan process. A prepayment penalty was hidden within the loan. A home was under appraised. A home was over appraised to approve a more costly refinance. More was charged for escrow even when taxes went down.  How can you find a transparent and reliable lender? Do your research.  Read the terms and conditions under any guarantees listed on a company's website. Generally, lenders reserve the right to change guarantees and promotions at any time. Ask about fees or prepayment penalties. This may not seem like a big deal up front, but you probably won’t like being hit with a fee at closing that you didn’t think you knew about before. Be transparent.  You may not be able to control the transparency of your lender, but you can control the details you give them. In your loan application and moving forward, share all relevant details that may impact your eligibility for a mortgage.  Many borrowers are disappointed that their lenders don't identify problematic information until it's too late to resolve the issue before the initial closing date. You can avoid such situations by disclosing student debt, tax debt, and all other financial obligations upfront.  Get a second opinion.  An appraiser decides how much your home is worth, and, in turn, the maximum amount the bank is willing to loan you. As the borrower, you are responsible to pay for the appraiser, but you don't have a lot of control around who does it since your mortgage broker hires the appraiser (often through a third-party appraisal management company). The bank's chosen appraiser is the authority on that particular loan. However, you can hire your own appraiser to serve as a second opinion. Slow process or delays — 18% Eighteen percent of 1-star reviews mention a slow mortgage process or delays. What are the common complaints about delays in the process?   1. Too much paperwork was required. The loan application was too long. The lender required irrelevant information. The lender required information to be notarized. The lender required information that took too much time to get. 2. Loan approval and closing took too long. The lender blamed the delay on underwriting. The process should have taken 30–45 days but took 60 days or more. The original closing date was postponed. The lender was slow to pay property taxes via escrow. The seller walked and the buyer lost the earnest money.   How can you ensure that your loan closes on time? Gather paperwork ahead of time.  Get a head start on your mortgage by gathering some of the information you'll need before being approved for your loan, including the following, where applicable: Tax returns Bank statements SSNs Auto loans Student loans Credit card debts Current mortgage(s) Rent payments Divorce documents Retirement accounts Recent income statements Down payment gift statement Lock your rate strategically.  Many lenders offer rate lock options in case rates rise. If a rate lock appeals to you, look for a lender that doesn't charge you for this service and that has an extended rate lock period. Realtor Daniele Kurzweil asks her clients to consult with her before locking their rate. "From start to finish, the whole process of buying in NYC takes roughly 90 days. What inevitably happens is that a mortgage broker hears that we have an accepted offer and tells the buyer to lock their rate that day.”  "However,”  Kurzweil explains, "that doesn't take into consideration the time it takes to finalize the loan" in her local market, including the following steps: 10 days for the contract to be reviewed and the financials of the building to be verified 30 days to gather and submit paperwork 2–3 weeks for the building representative to review the paperwork  Kurzweil describes the disappointment that can come when things take longer than expected: "All of a sudden, the 60-day rate lock has come and gone and my clients are stuck paying for an extension."  Expect delays.  Some loans will close within a month, but in many cases it can take much longer. If you keep your expectations low, you create space to be pleasantly surprised if the process goes quickly.  Lender errors — 12% Twelve percent of 1-star reviews mention lender errors. What are the common complaints about lender errors?   1. Important financial details were missed. A partner's income was left out of a loan. The borrower was told that they needed more money down when they didn’t. The lender omitted to inform a borrower that a cosigner was needed. A student loan account was overlooked.  2. The lender had a typo or misclick. Monthly mortgage payments were processed more than once. A late payment was charged after a refinance. Multiple hard credit pulls were performed in one week. Bank account information was recorded incorrectly. Names were recorded incorrectly. 3. The lender incorrectly handled escrow funds. Funds were misplaced into escrow. Property taxes were assessed incorrectly. Communication with the city was executed poorly.  How can you avoid errors in the loan process? Repeat yourself.  Be willing to share and re-share important details relevant to your loan, even if you've already included them in your loan application, including names, birth dates, assets, and debts. Don't assume your lender will catch any discrepancies because they might not, or they might not catch it until it's too late.  Audit paperwork. Where possible, look over the paperwork before it's sent to underwriting and again before closing documents are finalized. Work with your loan officer to do this face to face if there's a branch location near you, or over email, video chat, or a secure document sharing platform.  Verify your taxes and insurance.  To make sure your property tax payments from your mortgage servicer are going through, call the city or visit the property appraiser’s website yourself to confirm. You may also want to contact your home insurance provider, as yearly home insurance premiums are usually bundled in your escrow payments.   High rates or fees — 8% Eight percent of 1-star reviews mention high rates or fees. What are the common complaints about rates and fees?   1. The lender charged too many fees. Fees and closing costs were higher than quotes from other lenders. The lender's title company charged more than others. Escrow fees were increased after acquiring the loan. A fee was charged for locking into a rate. The lender charged borrowers to submit a payment. Certain fees weren’t reimbursed when a loan didn’t close — building survey, appraisal, and home inspection fees. 2. The rates were too high. Interest rates were high despite a borrower's excellent credit. Interest rates jumped arbitrarily while market rates went down. The lender didn't offer a rate lock or guarantee. New terms required a higher interest rate.  How can you secure low rates and fees?  Be aware of standard fees. It's the norm for buyers to pay for some services out of pocket before obtaining a loan.  You'll be responsible for some or all of the following fees, most of which are non-refundable: Appraisal  Title insurance Home inspection Credit report Documentation Land survey  Some fees, such as origination fees, escrow fees, and home insurance, are generally bundled within your loan amount to be paid off over time. Plan to spend anywhere from 2 to 5 percent of the purchase price of the home in closing costs. Prepare financially before you buy. To improve the interest rates for which you qualify, take steps to improve your credit. Pay off your other loans and debts where possible.  Shop around. You can compare quote estimates from several mortgage lenders before initiating a hard credit pull and before committing to one. Getting multiple quotes from multiple lenders can help you explore how your mortgage terms may change based on down payment, credit score, location, and home value with online financial calculators. Borrower didn’t qualify — 5% Five percent of 1-star reviews mention instances where a borrower didn’t qualify for a mortgage loan. What are the common complaints about being denied for a loan?   1. The borrower "should have" been approved.  The lender didn't accept 1099 income (self-employment or independent contractor income). A manufactured home didn’t qualify for financing. The lender advertised that borrowers with bad credit would get approved, but they were denied.  2. The borrower was given false hope.  Pre-approval was offered but the borrower was denied upon applying. The borrower was approved all the way to closing, including signing and submitting final disclosure and closing costs, then denied due to an employment gap. What do you do if you're denied for a loan? Don't take it personally. If you've been turned down for a mortgage purchase, even at the last minute, it doesn't mean the lender doesn't like you. These decisions are almost all about numbers. Reapply. Your eligibility for a particular loan type can improve over time as you improve your credit and debt-to-income (DTI) ratio, among other factors. Plus, sometimes lenders change their standards or add additional mortgage products that may better fit your situation. Lenders often approve applicants with subprime credit for FHA loans.  Don't let a loan rejection from one lender stop you from applying elsewhere.  Focus on your credit. Credit scores are probably the single most important factor in what rates and mortgage programs a borrower will be offered, according to Terence Michael of Omni-Fund Mortgage Brokerage. "Make sure that you do not owe more than 30 percent of the total available credit on any one of your credit cards, even for a day," Michael advises. "This is one of the best hacks for either boosting your credit score or keeping it from dipping right when it’s checked by a lender or bank." If you are denied for a mortgage, taking the time to build or repair your credit can help ensure an approval next time. "Keep in mind that you cannot fix your credit overnight," explains credit industry analyst Greg Mahnken at Credit Card Insider. "It takes time to build a strong credit file and demonstrate your worthiness as a borrower. You’ll need to demonstrate that you can make payments on time, keep your utilization low, minimize your applications for new credit, and have a healthy credit mix. The age of your credit accounts is also a factor, so keep that in mind before closing any credit card accounts."  Other ways to build your credit include using a credit builder loan and adding rent and utility payments to your credit reports. Your loan officer should also have resources to help you improve your credit score. 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Guest Post by Lilly Miller Regardless if renting properties is your primary source of income or a side one, your rental is an important financial asset. This means that keeping it secure is no trivial task but an undertaking that should be taken seriously and approached strategically. Otherwise, it’s not just your belongings and your tenants that could be in jeopardy, it is your reputation as well since the word that you are not taking your tenants’ safety seriously could get around easily. This could result in reputable tenants avoiding your rental and you having to lower your rent in order to attract any tenants. Having in mind the importance of your rental’s safety, here are a couple of recommendations for you to consider: 1. Get an insurance policy When an accident happens, although we couldn’t have predicted it, we are usually left wondering whether we could have done more to prepare ourselves. Instead of dreading an accident, it is better to think in advance and take out an insurance policy to have peace of mind. However, you need to read the small print to know exactly what is covered by the policy or you can be unpleasantly surprised in case something suddenly happens. When it comes to causes of property destruction, a typical policy usually covers fire, tornado or hurricane, hail or theft, while floor damage and earthquake are separate policies. 2. Install a home security system A home security system is an addition which will also delight your tenants since they would feel their belongings are more protected when they are not at home. These systems don’t only provide protection against theft but can also include carbon monoxide detectors and remote surveillance. Based on your budget and needs, you can opt for basic packages offering single-service theft monitoring, mid-range packages which allow mobile access and include notifications or complete packages which also encompass 24/7 monitoring by a person. Providing that your rental isn’t a luxury apartment, perhaps one of the first two options should suit your needs best but both will greatly contribute to your safety measures. 3. Improve door and window security If your rental has doors which could be opened with just a slight push of the shoulder, then you need to work on improving that as soon as possible. Thieves rarely barge into random houses, but instead, they observe the tenants’ habits as well as the state of the points of entry. First and foremost, you should remove any tree branches that might reach the window to make sure no thief can climb them. The next step is to install sturdy entry doors which will increase the overall feeling of safety, and also improve insulation. Burglars’ activities depend on quick and silent entries and exits but with these improved doors, they will not manage any of these things. 4. Add external lighting If the neighborhood is not illuminated enough, you yourself can improve the situation around your rental to prevent your tenants from having to walk and park in the dark. Ample outdoor lighting will deter any unwanted visitors as well. Even if a house is empty, burglars won’t be so enthusiastic about approaching a well-lit house for fear of being noticed by neighbors. Additionally, if you install motion-sensor lights, you will ensure that no unexpected visitor comes near the rental because if they get caught lurking around the house, they will have some serious explaining to do. Your tenants don't have to worry about their safety because if they hear anything rustling outside, they would also be able to see what is going on and react in time if need be. 5. Screen prospective tenants Property owners most often worry about burglars, fire, and earthquakes but they often forget to look closer to home — at the tenants. No matter how good a judge of the character you might be, some people have spent years perfecting their skills as con artists, so you might find yourself wondering how such a nice couple could have eloped with your valuables. Screen your tenants before you decide to rent them your property to ensure they are reliable and that they had no prior issues with paying their dues. Through different software, you can learn about their credit reports and whether they have any criminal background. Also, if you rent more than one property, it would be useful to create a database of applicants, just so you know you covered everything about everybody. Play it safe for peace of mind  Since your rental is an important item of your financial interest, its safety cannot be disregarded. Your strategy and approach will depend on your budget and wishes but taking care of it is obligatory both in terms of your tenants’ and your own benefit. Adding external lighting and installing strong doors will make any burglar change their mind while a security system will bring peace of mind to you and your tenants alike. However, don’t forget that not all tenants are reliable so thorough research unto their history is necessary to make sure you are not dealing with a criminal. It is also advisable to be prepared for any sudden accidents which means that an insurance policy is a prudent addition. Lilly Miller is a Sydney-based graphic designer and a passionate writer. She loves everything about home decor, art history, and baking, and she shares a home with two loving dogs and a gecko named Rodney. You can find her hanging out on Twitter.

According to a recent Bankrate survey, millennials (age 25–40) are the most likely group to experience home buyer's remorse. In fact, the data shows us that nearly 64 percent of millennials experience regret or remorse after a home purchase. What is home buyer's remorse? Home buyer's remorse is a deep regret felt after buying a house. Because homes are large purchases, if not one of the largest purchases many consumers will ever make, feelings of remorse or regret are common. While these feelings typically fade over time, you can avoid some common mistakes, which can help you feel more at ease after buying a home. What are the most common home buying regrets? According to Bankrate, the biggest finance-related regrets that millennial home buyers have include some of the following: High maintenance costs (not accounted for) (21%) High mortgage payment (13%) Displeased with mortgage rate (12%) Don’t think buying a home was a good investment (9%) Overpaid on a home (13%) Additional regrets include physical characteristics of a property, including millennials who felt they bought a house that was too big (14 percent), a house that was too small (14 percent), or a house in a bad location (15 percent). Multiple factors contribute to these common home purchase regrets, including a competitive market with record-low mortgage rates, not shopping around for a mortgage, and skyrocketing lumber prices. The competitive market provides a sense of urgency in putting an offer on a home and closing as quickly as possible, which can result in more unfavorable payments and costs, compounded with the fact that materials are just more expensive today than in the past. 13 common mistakes and how to avoid them Underestimating the commitment level involved Not shopping around for a mortgage Neglecting to consider all costs Forgetting about your emergency fund Assuming "new" means "better" Visiting your potential property only once Not taking time to see the neighborhood Buying a fixer upper you can't afford to repair Skimping on a quality home inspection Not taking one last look at the property Not getting a home warranty Making renovation decisions independently Not tracking project costs 1. Underestimating the commitment level involved A house is a big purchase, and that typically comes with increased responsibility. For example, when you get a mortgage to buy a house, you are committing to make subsequent payments on that home loan for the next 15 to 30 years, which is a large financial investment. Tip: Analyze, strategize, and counselApproach your home purchase like the large investment that it is — a house should never be an impulse purchase. Take time to establish what you want and need in a property and its location, analyze all the pros and cons of purchasing, and speak with friends, family, and real estate professionals to assess whether or not you’re ready to become a homeowner. 2. Not shopping around for a mortgage Shopping around for a mortgage is one the most important steps in the homebuying process, but a step that is frequently overlooked by the majority of home buyers. Yes, it might take you more time to pre-qualify with multiple lenders, and rates are fairly similar across the board, but saving even the smallest margin of a point in interest could save you thousands of dollars over the life of your mortgage loan. And you won’t know what rates are available to you if you don’t shop around and pre-qualify with multiple lenders. Tip: Read customer reviewsRates and fees will be entirely dependent on your personal finances, including your credit score and debt-to-income ratio (DTI). But if you want an idea of what the rates and fees are like with a specific mortgage lender, reading customer reviews can be a game-changer. Since mortgage products and services and fairly similar among lenders, it’s important to get an idea of whether or not a company is trustworthy and if they provide reliable customer service — a mortgage is a large investment, so you wouldn’t want to be locked in with a lender that you can’t get a hold of or that can’t answer any of your questions. Read Mortgage Company Reviews [From Real Customers] Compare rates and fees, and see what customers have to say about the mortgage process experience with specific companies. Read Reviews 3. Neglecting to consider all costs There are a lot of homebuying costs to consider, and that’s just a fact. The down payment is the big one that’s usually on the top of mind, but don’t forget about closing costs, moving expenses, home furnishings, and home maintenance costs that will inevitably come up. Crunch some numbers before you get too far in the homebuying process, or to simply map out the costs that might arise. Tip: Don’t just focus on the down paymentLuke Babich, CSO/Co-founder of Clever, recommends the following: “I'd recommend anyone considering buying a house to make a balanced analysis of whether or not they can actually afford to buy a house. There's a common saying that just because you can afford the down payment does not mean you can afford the mortgage! Make sure you factor in important variables: house maintenance (which is on average $13,000 a year), mortgage payments, home insurance, and security.” 4. Forgetting about your emergency fund The homebuying process includes many large upfront costs, not to mention that you will need to budget out your monthly mortgage payments throughout the life of your loan. Thus, it can be tempting to save up all money necessary to cover your home purchasing costs, but if you neglect to save up some money for emergencies, you may find yourself in deep water later on. Therefore, when you’re saving up to buy your dream home, also save up for your emergency fund. Tip: Buy less house than you can affordJohn Grimes, Realtor at BHGRE Metro Brokers, recommends the following:  “It is very important that they draw the line at a level they're comfortable with going forward with no rosy assumptions of increased income. Ideally, a dual income couple should buy a house that either one of them can swing on their one income. That almost never happens, but it would reduce stress in the household. Buying below one's means leaves room for savings, vacations, entertainment, charitable giving, and other priorities.” 5. Assuming “new” means “better” Daniele Kurzweil, the Friedman Team at Compass, explains how a new home doesn’t necessarily mean it’s “better”: “Everyone loves walking into a home and seeing that there is no work to be done. Bring your toothbrush and you are home. Many developers and home flippers are catering to people who want new new new and design their projects to conform to whatever the latest trends are. Our clients walked into an apartment and fell in love with the open concept look with very modern finishes. Fast forward six months and our clients realized that while an open concept floor plan might be wonderful for a two-story house, in an apartment it poses its own unique challenges. Sound travels, and when you have one big open room you have nowhere to escape to. The modern finishes were beginning to look dated, and since everything was out in the open, it was the only thing they could focus on.” Tip: Consider the pros and cons of a new buy or build Kurzweil continues: “Design trends are just that — trends. When purchasing a home, be sure to consider what your needs are. Is this for starting a family? Empty nesters? First-time home purchase? Think of buying a new construction home kind of like buying a car: the second you drive it off the lot, it starts depreciating in value. You are buying new construction because it has never been lived in, and as such you are paying a premium. But when you go to sell, one of the biggest draws will no longer be there. . .it will no longer be new.” 6. Visiting your potential property only once Imagine that you find a property that you can just feel is the right one. The neighborhood is beautiful and quiet. The neighbors seem nice. You’re ready to put down an offer right there and move in the next day. While this can happen and your gut feelings shouldn’t necessarily be ignored, you might want to visit the property again on another day. When you only visit a property once, you might miss out on important factors, such as after school traffic, that might not actually be ideal. Additionally, a one-time visit might not provide you with enough time to take a close look at the property, which could cost you in the future if there were repairs or issues that you missed on your one and only visit to the property. Tip: See the property at different times on different daysGerard Splendore, Broker at Warburg Realty, recommends the following: “I sold a one-bedroom apartment to a first-time buyer and we only viewed it when school was in session, not at the beginning of the day for drop off or end of day for pick up. At the walk through the day before closing the street in front of the building was clogged with school buses and parents in cars. This came as a complete surprise to the buyers.I always suggest seeing properties during the week at various times, in the evening, and on weekends. This is a great way to avoid any surprises about the surrounding area.” 7. Not taking time to see the neighborhood Alison Bernstein, founder and CEO of Suburban Jungle, was the first of her friends and colleagues to leave the big city to live in the suburbs. She and her growing family found an area that seemed perfect on paper, but it turned out, after they moved, that the area wasn’t what they had anticipated at all and they realized that they really wanted something different. The trouble is that real estate agents don’t always know neighborhood and community nuances, so it can be hard to get a complete picture of an area. For this reason, Bernstein started The Suburban Jungle, a company committed to helping families make the move to suburbia by making connections in the communities they’re interested in. Tip: Meet people and make connections Bernstein recommends the following:  “Talk to as many people that live [in the neighborhood] and try to get the real, non-sale pitch to understand what their day is like. Maybe meet them and run a few errands with them and see if you can see yourself there. You know, like even going to the school pick-up if you have kids, or going to some preschools and being there at the time of drop-off or pick-up. Those things go a long way because a lot of people see community on a Saturday and they're like, "oh, this looks fabulous," but it tells a different story on like a Tuesday afternoon.” 8. Buying a fixer upper you can’t afford to repair Perhaps you’ve spent some time watching HGTV and have been entranced by shows like Fixer Upper or Good Bones. Maybe you think that buying a run-down home could be a fun and easy project. This could be true if you have a background in construction or home renovation, but for the average individual, buying a fixer upper home could cause more headaches and stress than you really want or need. Tip: Don’t get in over your headAlison Bernstein from Suburban Jungle explains: “If you have the appetite for fixing up and you don't get in over your head, and that's what you're excited about, then great. It's important to make sure that people have enough time because a lot of people are working full-time or have kids, and it is definitely a very time-consuming process. So as long as you can enjoy it and take it on, and like I said, more importantly, enjoy the process, then it's great. If you don't have a choice, you're stuck and you're renovating because you have to, I think it takes on a different light, but hopefully it's well worth it.” 9. Skimping on a quality home inspection One of the best ways to induce remorse or regret is by skimping on a home inspection. In many cases, this might be a required part of your mortgage process. But if it isn’t, that doesn’t necessarily mean that it should be optional. Tip: Pay more for a highly qualified inspectorWally Conway, president of HomePro Inspections, recommends the following: “The single best way to avoid buyer’s remorse is to have clarity on what you are buying and have protection for the unexpected. Your home inspection should be performed by the most experienced and technically competent home inspector that money can buy. Most buyers are taking on a 30-year mortgage, and that’s a long time to live in regret. It's also 360 mortgage payments! Wouldn't it seem wise to invest a mortgage payment to ensure that you have done as complete a job in due diligence as is humanly possible? Consider protecting your home after the inspection is done by choosing a home inspection that includes protection to cover the cost of the unexpected problems that will come up with home ownership, such as live sewer line failures, mold, and roof leaks.” 10. Not taking one last look at the property David Pipp, Personal Finance Blogger at Living Low Key, shares his experience not noticing an issue that could have been avoided: “Shortly after we moved into the house, we had a massive rain storm and ended up with water in our basement. It wasn't until that issue arose that we noticed there were no gutters on the back side of the house where water got in. $2,000 later we had new gutters on the house and our water problem was fixed. Since we moved in, we have had to add a water filtration system to the well, replaced both of the decks on the house, replaced a leaking toilet, and countless other small fixes totaling close to an additional $10,000. Next summer we plan to have the house re-insulated because it gets really cold during the Minnesota winters.” Hire a second home inspector One way you can ensure that nothing is missed, or any issues are overlooked, is by hiring a second home inspector. This might be an additional upfront cost, but having a second opinion at the start, and a comparison to your initial home inspection, could save you thousands of dollars later on. 11. Not getting a home warranty After putting money into a mortgage, a home inspection, and more, you may want to shrug off getting a home warranty — after all, it would just be one more expense, right? However, you never know what could happen once you close on your home. Perhaps, just days after closing, your water heater breaks or your air conditioning stops working. Without a home warranty, you could be spending a large amount of money out of pocket, whereas a home warranty could save you from some of these expenses in the long run. Tip: Understand how a home warranty worksJlyne Hanbak, REALTOR® Keller Williams Realty, explains: “A home warranty is a relatively inexpensive way to protect the major appliances and systems of a home for a specific period of time after the home is purchased. A home warranty can — and should — be negotiated into the contract on behalf of the buyer so that they are protected after their home closes.” 12. Making renovation decisions independently When renovation decisions come up, it can be helpful and important to have a second, professional opinion on your next steps. While you might think that you could save more money by doing a Google search or seeing what other people have done on YouTube, these options may not be the best for your specific situation and could cost you more overall.  Tip: Hire a professional When buying a fixer-upper home you need to get advice from a home improvement professional on its overall potential for making the improvements you're expecting to make. 13. Not tracking project costs John Bodrozic, co-founder of HomeZada, explains: “When you don’t budget and track costs on home remodel projects, you can end up way over budget. Plus, you don’t have a record of costs that can help you adjust the tax basis of your home at tax time.” Tip: Budget and record expenses from day one Keep a record of your home expenses from the very beginning, it’s really as simple as that. Move forward without regret The answer to avoiding home buyer’s remorse really comes down to three things: financial preparation, education, and awareness. Learn about the different mortgage products available to you. Get loan offers with interest rates from multiple lenders. And before settling on a particular lender, read customer reviews about the top-ranked mortgage lenders. Are there hidden lender fees? Are the loan officers prompt to return calls and emails? Are other borrowers pleased with their experience? Remember that a professional opinion could be a big money and time-saver. While it may seem like a hassle to get a contractor, home inspector, or other home professional to take a look at your property, it could save you from stress later on. Buying a home, unfortunately, can often come with some buyer’s remorse — it is a large purchase after all. But if you prepare properly and learn from the mistakes of others, you can make the best decision possible without looking back. Compare Top-Rated Mortgage Lenders Read verified customer reviews and find the best mortgage lender for your needs. Compare Article updated by Kalicia Bateman Contributors: Luke Babich, CSO/Co-founder of CleverJohn Grimes, Realtor at BHGRE Metro BrokersDaniele Kurzweil, the Friedman Team at CompassGerard Splendore, Broker at Warburg RealtyAlison Bernstein, founder and CEO of Suburban JungleWally Conway, president of HomePro InspectionsDavid Pipp, Personal Finance Blogger at Living Low KeyJlyne Hanbak, REALTOR® Keller Williams RealtyJohn Bodrozic, co-founder of HomeZada

Guest Post by Holly Welles Homebuyers with a larger budget are often interested in a larger property. They believe it's in their best interest to buy a house with more yard space, more rooms, and more storage. While this may seem preferable to a smaller property, it's almost always better to buy less house than you can afford.In truth, having more of something doesn't mean you'll make the most of it. It's common among homeowners to spend a majority of their time in a few select rooms, leaving the rest of their living space unoccupied. The reading nook they planned to use only gathers dust, despite their initial intentions. So what should you keep in mind during the homebuying process? How will a smaller property help with your financial situation? We'll walk you through everything you should know on the subject, looking at the top five reasons to purchase only as much as you need when searching for a home. 1. Maintenance responsibilities Your maintenance costs will vary depending on the size of your property. With a smaller home, you won't need to spend as much on tasks like landscaping. A larger home may present a problem, as these higher maintenance costs will compound and build up quickly over time. It's also crucial to give thought to your long-term situation. Once you retire, you'll still need to manage your property and maintain its condition. This may prove difficult if you have limited mobility, and something as simple as shoveling snow or raking the leaves could take considerable effort. 2. Home repairs and upgrades Repairs and upgrades are inevitable for any homeowner. Whether you fix a fence or attend to a leaky faucet, your property is an ongoing investment that demands your time and money. Long after you purchase your home and pay off your mortgage, you'll still have expenses to manage. With that in mind, it's vital to plan for expensive repairs and upgrades. It’s inevitable that you’ll need to replace windows, fix HVAC systems, and replace a roof every 10–15 years, for example, and the costs of the renovation could seem overwhelming. Owning a smaller home will make it easier to save money and address these issues as they present themselves. 3. More opportunities to save If you're planning for children, you likely see the appeal in a larger property. Your kids will run and play without the restrictions of a smaller space, roaming your backyard with the family dog. This freedom is important, of course, but you also have to consider your children's future comfort. More specifically, you may have to help your kids through college. It's far less challenging to contribute to their college savings when you spend less on mortgage payments and maintenance costs. While your children need room to grow, they also need financial support. 4. Mortgage and PMI payments Many of today's homebuyers can't afford a traditional 20 percent down payment. Some of them choose to pursue an FHA Loan, an accessible option with a low down payment. Unfortunately, these new homeowners need to pay extra for private mortgage insurance, or PMI, on top of their regular mortgage payments. It's an additional burden which can place strain on your financial situation. If you plan on buying a larger house with an FHA Loan, you should study the risks involved with that purchase. Before you proceed with an FHA Loan, it's essential to learn more about what the commitment entails. 5. Emergency preparedness When searching for a new home, you'll need to confront a few questions that may feel uncomfortable to think about. If you were to lose your job, suffer an injury, or undergo a similar hardship, would you have enough money to pay the bills? Could you accommodate the expenses of a larger home? If the answer to those questions is "No," you should look for a property which is well within your price range. Beyond the typical benefits you can expect, you'll have more resources to manage an emergency. A sudden illness or unexpected termination won't cause as much turbulence in your life. Buying the right amount of house As you move forward, give thought to the advantages of a smaller property. It's often better to buy less house than you can afford, even if you're willing to spend more on a larger home. Regardless of your eventual choice, you can feel confident knowing you made an informed decision. Holly Welles is a real estate writer and the blogger behind The Estate Update. You can find more of her tips on homeownership, finance, and investing on Twitter.

There's no dancing around it: tech is disrupting the real estate industry. In general, it's a no-brainer to work with an agent on the buyer's side where you're not paying a commission. But if you're a seller, you have other options, and it can be a difficult choice. Using AI and online database, startups like Open Listings, Opendoor, and Homie present alternatives to the traditional options of selling your home by paying an agent a set commission or going through the For Sale by Owner (FSBO) process without support. According to low-commission real estate network Clever, millennials are 93 percent less likely to use a real estate agent than other groups. So are real estate agents on their way to becoming obsolete? Our panel of agents and other real estate professionals say “no way” — that just because you can sell your house without an agent — doesn’t mean you should. Here are 10 advantages to working with a real estate agent: 1. Micromarket expertise Neeta (aka Sujata Durai), Managing Partner and Property Consultant at Chennai Dream Homes® "Brokerage agencies or online startups that promise to help you buy or sell a home may be strong on a national level, but not in the micromarkets in which you may be interested. A realtor is well-versed with niche areas and can reduce the time it takes to nail down a selling price and identify a high-quality offer. As a market expert, a realtor can give advice on home rates, local economy, business establishments, infrastructure, and local government laws that the web portals just cannot get into." James McGrath, Co-founder of NYC real estate brokerage Yoreevo"iBuyers like Opendoor and Zillow are aggressively expanding and becoming more of an option for sellers. In markets with fairly uniform housing stock like Phoenix, Las Vegas, and Houston, selling to an iBuyer probably makes sense. Those are the types of markets where home prices are more predictable, so iBuyers are more aggressive on price (as there is less risk in their pricing algorithms) and there are more iBuyers so a seller can see which will make the highest offer. In other markets where pricing is more complicated and subjective, you probably want to work with a realtor who can add that expertise. It might just be their opinion but the eventual buyer will be offering a price based on their opinion too." 2. Time efficiency  Laurie Rose, John R. Wood Properties YourNaplesParadise.com "Choosing a local agent over an internet driven agent gets you someone who will sit down with you face-to-face and discuss your needs and take you through the buying or selling process. You are a treasured client, not a number. People feel they can sell their home on their own and make more money. Unfortunately, they don't consider certain variables. A FSBO, on average, takes longer to sell. And the longer the home is on the market, the more carrying cost is created. They will need to hire a professional photographer, possibly a stager, and they may have to take time off to show their house. In the long run, time is money; you will actually save money by hiring a professional to sell your home." 3. Litigation protection David Roberson, Silicon Valley Property Management Group"As a practicing real estate attorney I saw dozens of cases where one or both sides attempted to represent themselves in the transaction only to be completely inept in protecting themselves, or completely misrepresenting the condition of the property. In each of these situations the transactions were embroiled in litigation. Lay people do not understand the importance of investigation and disclosure of all material facts that affect desirability. A seasoned agent or broker helps ferret out all of the issues that are critical to having a successful transaction where each side was fully informed and the escrow closes without hitches. Moreover, if there is a problem during escrow, a seasoned agent or broker can help navigate those problems, whereas a lay person with little or no experience could run into trouble not knowing where to turn." 4. Referrals Than Merrill, CEO of real estate education company FortuneBuilders"Sellers will find real estate agents particularly helpful, as they often have connections that can attract interested homebuyers. Many home sales are actually the result of referrals, making experienced agents an invaluable asset to the home selling process." 5. Professional networks Jennifer Winton, RE/MAX Moves REALTOR® of Greenville, SC"My vast network of contractors, photographers, home cleaners, and home services professionals means that my clients will have professionals taking care of them every step of the way. No need to worry about timelines, inspections, or what's next." 6. Buyer vetting Melissa Okabe, Real Estate Agent, Alta Properties"Do you know what to look for in an offer? Hint: It's not just about the price offered on your home. Your realtor can discern a qualified offer or buyer from an unqualified one by carefully reviewing all aspects of the Residential Purchase Agreement and Buyer's Financial Package (proof of funds, FICO, pre-approval letter) with you, highlighting any contingencies (ex: contingent on buyer's sale of current property), type of loan and what that means for you as the seller, talking to the buyer's lender for further explanation as needed, and assisting you with disclosures such as the TDS, SPQ, etc. which are expected to be provided to the buyer at time of escrow." Daniele Kurzweil, the Friedman Team at Compass"As a Licensed Real Estate Salesperson working in New York City, I am working in a unique area where much of our inventory is made up of Cooperatives, meaning there is approval required for every purchase. Each building is looking for a unique formula from their buyers. Someone who is not familiar with the nuances of each building might bring forward an unqualified purchaser who will simply be rejected from purchasing in the building and the seller and buyer will have wasted time and money." 7. Stress elimination  Neeta (aka Sujata Durai), Managing Partner and Property Consultant at Chennai Dream Homes® "A real estate agent's main job is to represent his or her client's best interests in a property transaction. If you are especially a busy executive who would rather delegate the tasks of shortlisting homes based on your criteria, managing visits, making and receiving offers from the other party, fielding numerous phone calls, emails, and meetings for coordination, you would be better off working with a Realtor, who does these exact tasks day in day out for a fee. Many highly rated agents adhere to a professional code of conduct, and manage the process seamlessly from start to finish, so that you only need to be there for important milestones like selecting the house to buy, making the final offer after negotiations, and signing the paperwork." Melissa Okabe, Real Estate Agent, Alta Properties"How do you like spending your free time and weekends? Most likely your hobbies don't include driving around putting up open house signs, coordinating catering services, comparing staging prices, hosting 4–5 hour open houses on Saturday and Sunday and Broker's Opens during the week, or meeting potential buyers at any given time during the day to accommodate a showing. It's a lot of work and may cause you, the seller, unneeded stress." 8. Access to MLS listings Daniela Andreevska, Marketing Director at Mashvisor"Only agents and brokers have access to the MLS, which is the largest and only comprehensive source of all publicly listed properties for sale. Whether you are buying or selling, having access to the MLS will provide you with the highest exposure and the most numerous options." Andrew Weinberger, Founder and CEO of PropertyClub "When selling, there are two main benefits of using a realtor: better marketing and the insight and experience to properly price your home. Basically, you'll need a realtor to get your listing out there, as without one you probably can't get on the MLS or reach as many buyers through various listing sites. A realtor can also help you properly price the home, which is a big problem with FSBOs. That being said, almost all the FSBO/assisted FSBO startups use realtors, even if they're a flat fee service. You just can't get the same marketing if you're not associated with an MLS. Another reason many sellers use an agent is due to the fact that selling a home is stressful and an agent can essentially make everything go seamlessly. This level of service is something assisted FSBO startups don't provide as their agents usually list your home (giving you access to the same marketing as a full-service agent), but do little else as you're generally expected to show the home to potential buyers yourself. My recommendation for getting the best price with the lowest fees is to list an assisted FSBO and pay an agent to run comps (comparable sales) and a CMA (Comparative Market Analysis) report for you to help you price the home. This way you pay a flat fee, saving thousands, and you have an impartial agent helping you price the home properly." 9. Full representation Corey Fager, Owner of Buying Houses Nashville "A good realtor should offer full service representation, which will include pulling accurate neighborhood comparable properties, giving input on pre-listing upgrades or repairs (like paint colors, decluttering, staging, etc), taking care of photography/videography, and taking the lead on negotiations once an offer is received. A realtor owes you, their client, fiduciary responsibility and full disclosure. An experienced realtor can and should more than cover their commission by assisting in the details like price per square foot, title insurance, seller-paid closing costs, and negotiating repairs; not to mention the more complicated details like inspection and contingency periods. From my experience buying as an investor and also as a realtor, these alone are worth their commission." Mark Block, Director of Sports/Entertainment and Luxury Sales at The Agency "The listing agent should know the local market so that you don’t list too low or high which has major drawbacks. The agent can qualify buyers before letting them into your home. The agent can market your property and make sure that it is presented in the best light to the most buyers and agents possible through print ads, mailer eblasts, and internet ads, to name a few. Also when it comes to negotiation, both sides can benefit from having an agent. As one CEO of a Fortune 500 company told me, it is easy to negotiate multi-million dollar deals in business, but when it gets personal it is very different." 10. Agent fees can be negotiated Ben Mizes, CEO of Clever Real Estate "The average home seller pays between 5% - 6% of their home's sale price to the two agents who sell their house (both the seller's agent AND the buyer's agent). That's a lot of equity you've built up over time, gone in the blink of an eye! Most people don't realize that commissions are negotiable. You can usually talk the agent down to 1% or 2% and save thousands. Agents can be expensive, but they also rely on you for business, so don't be afraid to negotiate. In hot areas where homes fly off the market, there's simply no reason to pay the full 6% commission."

According to a recent survey, the top three barriers to homeownership are — Cost of a down payment Cost of monthly payments A lack of overall savings Money, money, and more money. Enter tiny homes. With 91 percent of single-family home buyers favoring homes 2,000 square feet or bigger, living large is still king, and tiny homes are the exception rather than the norm. But they’re becoming more popular, and finances play a role. Say what you want about the lifestyle aspects of this “trend,” but tiny houses — especially DIY ones — are dirt cheap compared to the typical single family home or condo. The financial barriers to tiny home ownership simply aren’t as daunting.Still, a professionally built tiny house costs around $60,000 on average — far more cash than many potential buyers have on hand. And tiny home financing can come with unique challenges. So, how can (and can’t) you finance a tiny house? Can I finance a tiny home with a mortgage? The short answer is no. There are a few exceptions, but you should assume you won’t be able to finance your typical tiny home with a mortgage. Why not? The bank wouldn’t make enough from the arrangement While there’s not a universal minimum loan amount, banks generally won’t fund mortgages under $50,000. It’s not cost-effective for lenders to do the work with less than that because they only charge origination fees of 0.5 percent to 1 percent of the total loan amount. It’s not considered real estate A mortgage cannot finance anything mobile, including a mobile or manufactured home, a titled trailer, or a tiny home on wheels. It requires a permanent, foundation-affixed home. Shawn Breyer, owner of We Buy Houses Chattanooga, describes the distinction: “Not all tiny homes are considered real estate. If a tiny home has wheels, then it is considered personal property. To be considered real estate, there must be property taxes on the asset. Without a recorded title and plat [a map showing the divisions of a piece of land], there are no property taxes and it is not considered real estate. There's a difference in financing options for personal property versus real estate.” The property can’t be appraised An appraisal is primarily based on comparing a home to homes with comparable square footage that have sold within the previous year. And since tiny homes are relatively new, there generally aren’t enough homes for a meaningful comparison to take place. Matt Hackett, operations manager of Equity Now, expounds on the roadblocks to appraisal: “Fannie Mae doesn't have a minimum square footage requirement for a home, unless the property is a condo, coop, or a manufactured home. In that sense, there is nothing in the standard underwriting guidelines preventing the financing by mortgage of a very small home, but the home needs to conform to the neighborhood and there have to be enough similar sales for an appraiser to be able to determine an opinion of market value.” There are exceptions to the ruleHowever, you may be able to secure a mortgage in certain regions if specific conditions are met. Joe Toms, president of FreedomPlus explains how: “Mortgage loans are offered only for homes that are built on permanent foundations. While most tiny homes are built to be mobile, if someone is building a tiny house on a foundation — and complying with local building codes and requirements —  they may be able to qualify for a mortgage.” Buildings Guide is a good resource to check out the requirements and codes in your area. Can I finance a tiny home with an RV loan? Yes. Some tiny home manufacturers, such as Tumbleweed Tiny Houses, provide financing to purchasers through RV loans. To obtain an RV loan, the home must first be certified to meet manufacturing and safety standards by the Recreational Vehicle Industry Association. Adele Alligood, financial advisor for EndThrive, says the benefits of using an RV loan include the relative simplicity of the process compared to that of a mortgage and the fact that you generally aren’t required to put up collateral. However, this solution isn’t perfect. Alligood explains that “to secure an RV Loan, you need a steady income, good credit, and somewhere else that you can call your primary residence.”An RV loan works if your tiny house will be your traveling home, your second cottage, or getaway. But if you intend for your tiny home to be your primary residence, you need another answer. Can I finance a tiny home with a personal loan?  In almost every case, yes. A personal loan can help you pay for the costs of building a new tiny home or purchasing a pre-owned one. Typical personal loan amounts range from $2,000-$50,000, but some companies will lend borrowers up to $100,000. It offers flexibility  The main advantage to a personal loan is that it can be used for any purpose the borrower wants, whether that’s paying for materials for a DIY build, labor costs for a professional builder, a plot of land, or a F-350 sized truck, which you’ll likely need to pull a movable tiny home. It may be easier to qualify Independent personal loan companies use different criteria than a traditional bank or credit union to evaluate a person’s repayment liability. According to Toms, “This can be especially helpful for someone whose credit profile may not reflect his/her ability to repay, or for someone wanting to use the loan for a non-traditional purchase such as a tiny home.” Conditions still apply However, that doesn’t mean personal loan standards aren’t stringent. The higher your credit score, the better interest rate you’ll qualify for. Conversely, a personal loan can be a disadvantage if your credit is poor. Alligood warns, “If your credit is less than ideal, a personal loan could cost as much as a credit card loan or more.” Plus, some personal loans come with prepayment penalties. Can I finance a tiny home with my home equity?  With a home equity line of credit (HELOC), you can use your home as collateral for a loan amount, which could go towards a tiny home build or purchase. You can draw on that line of credit for a certain draw period, then repay the amount you borrowed along with interest. A different home equity option is a “co-investing” model like that offered by Unison. With Unison, a homeowner can get paid up to $500,000 or 17.5 percent of the home’s value as a one-time payment to be used at the consumer’s discretion, such as building a small or tiny home as an Accessory Dwelling Unit (ADU) on their property. Then, when the homeowner decides to sell or buy Unison out, Unison gets a share in the appreciation of the home. Both parties benefit if the home increases in value and both share in the loss if the home decreases in value. Unison strategist Amin Mirzadegan says that Unison’s model is different than a home equity loan or line of credit in that homeowners don’t garner any added debt, monthly payments, or interest. “Additionally,” Mirzadegan explains, “Unison customers who increase the value of their home by building an ADU also benefit from the Remodeling Adjustment feature, which allocates 100 percent of the value attributable to a home improvement project to the owner, so Unison doesn’t share in any value gained from the project itself.While an ADU is not considered an independent piece of real estate on its own land or personal property like a mobile tiny home, it’s becoming an increasingly popular option for multi-generational or caregiver households.   Thinking outside the box Of course, it would be ideal to pay for your tiny house out of pocket. Or to procure the money you need without dealing with the complicated technicalities of loans from financial institutions. Consider these additional ideas as you make your financing decision. Regardless of the option you choose, be clear on the nitty-gritty of all terms and conditions. Borrow from friends or family. Come up with an agreement that benefits you both, such as an interest payment that compensates them well, but is less than what you’d pay a bank. Save aggressively. Forego as many non-essentials as you possibly can. Live like no one else now, so you can live like no one else later. Build as you go. If you’re not in a time crunch, purchase materials for your tiny home in waves as you have the money, and not all at once. Consider manufacturer financing. Some manufacturers have their own financing options set-up so you don’t have to worry about working with a third party.  Look into peer-to-peer lending. There are tiny home communities online that are invested in the tiny home movement. And some individuals will invest in a borrower’s tiny home. Try a chattel mortgage. Similar to a car loan, the lender owns your home until you finish paying off the loan. This is a good option if you park your tiny home on leased land or you move frequently. Don’t forget about using credit cards. Proceed with caution! But if your credit limit is high enough to cover your costs and you’ll be able to pay your bills off quickly, this can work.   

Halloween is here again. Year after year, you decorate your house with ghoulish glee and proudly wear your badge as the most festive in the neighborhood. But this year, you’re selling your house. Can you celebrate without turning off potential buyers? The answer is yes, but there are some things you’ll want to consider. We teamed up with Laurie Stauffer, Utah Realtor® with Urban Utah Homes & Estates and owner of Golden Hive Real Estate, to bring you four important tips from a buyer agent’s perspective while out in the field looking at homes this time of year. Stauffer has some valuable tips to share regarding types of decor that work to your advantage, as well as specific decorations to avoid. Her guiding takeaway? Let's jump into the tips and tricks that can help your home stand out, even amongst your Halloween decorations this year! “A porch set-up with curb appeal in focus works great for Halloween or throughout the remainder of fall,” Stauffer advises. “Think pumpkins, branches, or corn stalks.” Flower baskets with mums, pansies, or aster showcase vibrant colors tastefully.  Make sure your entire yard, not just your porch, is ready for a showing. Dispose of fall yard work clutter like bush and tree trimmings along with any rotting pumpkins or remaining garden spoils. And as much as we all love Casper, this would be a good year to skip the outdoor inflatables. Stauffer explains that “it’s fine to be festive, but don’t let your decor be overwhelming.” She even suggests considering a monochromatic color scheme. One mistake sellers sometimes make is covering surfaces in the interior of the home with holiday trinkets because “it’s tradition.” No matter how cute or clever the decorations, clutter makes rooms feel smaller and usually hides the simple beauty of a clear surface. “Clutter infamously distracts buyers from being able to really see the home,” Stauffer cautions. “Some buyers just can’t see past it.”Keep any cliche or potentially-tacky Halloween displays in storage and experiment instead with a pair of colorful gourds on the kitchen table, a bouquet of bright stalks by your walk-in shower, or a simple wreath on your bedroom door. For families with kids, nothing screams “run away” like blood-spattered caution tape or a frightening clown figurine. And you obviously don’t want prospective buyers to avoid your house! This year, “go spooky rather than going for gore,” Stauffer suggests.  Pair together elements of classic Halloween like a vintage chandelier, old books, and candlesticks. Even homemade decorations like hanging paper bats can work well in a kids room.  But spook needs to be applied with care. As fun as it is to come home to dancing skeletons and shrieking witch dummies, those items probably don't belong, even when selling a haunted house. Finally, as you stage your home for walk-throughs, sprinkle pleasant, sense-appealing signs of the season throughout. After all, a home’s appeal is more than just visual — the overall “vibe” of a home can make or break a buyer’s interest. Why is subtlety important when selling your home? “Buyers want to see themselves in this home, and not you,” Stauffer explains. “The way to do this is to appeal to the masses and entice as many people to walk through your listed home as possible. Keeping it neutral casts a wider net to the buyer market.”Stauffer recommends maintaining a subtle festive feel in your home by keeping your seasonal touches limited to a few rooms — a simple centerpiece for your dining table, a grouping of striking candles on the mantle, or a themed pillow tossed on the couch. Meanwhile, keep your everyday decor neutral for any time of the year. Utilize aroma with essential oils, candles, or wall plug-ins. A hint of cinnamon, orange, sage, or pine can elicit positive feelings towards your home. Just make sure to get the second opinion of your agent to make sure the smell isn’t overpowering! A small bowl of festive candy with a friendly note to “help yourself” is a personable gesture that gives your home a welcoming feel. If you’re missing your usual Halloween get-up and wonder if it’s worth the sacrifice to follow our tips, remember that the goal is to impress with your listed home, not your decorating skills. Stauffer encourages sellers to get the right decor down for this year, then reward yourself by going all out next year in your new home. “We all know you’ll be wanting to throw a big Halloween party in your new house.”

Part 2 of 2 Choosing a lender for your personal residence or rental property is an important decision and so is deciding on the property itself. In Part 1, real estate experts described circumstances in which purchasing an additional home and renting one of them makes financial sense. In Part 2, our contributors discuss the nitty-gritty of renting a property, including choosing a home type and how to best manage a property.  If you or someone you know is pursuing the course of additional-home ownership, consider this advice about renting various property types and the demands required of landlords. Choosing a property type   “There are ways to mitigate your risks when owning a rental property, such as buying multi-family properties. If you are renting a single family home and your tenant moves out, then you are stuck paying for the turnover costs and the vacancy while you try to fill that vacancy. However, if you have a 4-unit property and one tenant moves out, you still have three units producing income. The income from the three other units will still pay for the mortgage, turnover costs, and marketing costs. Purchasing a multi-family property will not negate that you're still going to run into bad tenants, repairs, and vacancies, but it will allow you to use cash flow from other units to pay for the unit needing attention.” Shawn Breyer, Owner of Breyer Home Buyers of Atlanta“Single family homes and duplexes are always a safer investment bet than condos since you have more control over your expenses. If you run into tough times, you can decide to turn off the water or electricity, skip the landscaping, drain the pool, etc. In a condo, those things stay maintained, and your condo fees don't change just because you are having financial challenges.On the other hand, condos are just so much easier to maintain, especially if you are an out-of-state investor. The association does most of the heavy lifting.” Sep Niakan, Founder and Broker at Condo Blackbook and HB Roswell Realty “Renting condos is a completely different ball game than single or multi-unit residences.  Prospective home buyers (without expertise in real estate investment) should proceed with caution before purchasing a condo as an investment. Condos are subject to a Homeowners’ Association (HOA) and the associated HOA fees. HOA fees, used for upkeep of the community’s common areas, cost hundreds of dollars per month.  HOA fees often cause rental property to be a net loss every month. Unfortunately for homeowners, the HOA fee is beyond their control and thus even a smart landlord can’t mitigate it. I often work with sellers who are desperate to get rid of their condo because the HOA fees are slowly draining their finances.Prospective condo buyers must also be wary of the dreaded “special assessment.” This occurs when the HOA makes a one-time expense, repair, or improvement, and charges community members for that expense.  To guard against unexpected special assessments, condo buyers should request financial statements from the HOA to ensure it has enough reserves to cover unanticipated expenses.” Earl White, Co-founder of House Heroes  Juggling demands as a landlord “You or a property manager need to respond to the plumbing leaks, appliance failures, and complaints that the grass is too high or that there are bugs. In some instances, roommates don’t get along, the renter and other owners or tenants don’t get along, or the HOA wants something done. You may have collection and default issues to deal with. For that reason, having a professional management company is well worth the expense.”  Bruce Ailion, Realtor and Attorney at RE/MAX Town and Country of Atlanta  “A big part of the challenge that people face when getting a rental property is staying on top of all the things they need to do manage, maintain, protect, and possibly improve their rental property. Here is a quick list of things that people need to be prepared to manage for their rental property: A preventative maintenance schedule: The rental will need to have the gutters cleaned, the air filters replaced, the hot water heater drained, the dryer vent duct cleaned out, trees pruned, etc. Having a digital property maintenance calendar that reminds you of when these things needs to be done is important to avoiding expensive repair costs.  Many people buy a rental property and spend money remodeling it to fix it up. It is important to plan out a budget, track costs, and keep photos, receipts, warranties, etc. for all the new material installed on the project. This will keep on you budget, but you also need to save this info for tax time and to make sure the home is properly insured after the new remodel. If you ever sell the rental, it is helpful to use this information to market the home. A home inventory is important to make sure the house is insured properly. Taking and keeping photos of the condition of the house and all the equipment and appliances ensures you are prepared in case disaster strikes your rental. Stay on top the estimated value and your equity in the rental property. Home values are always changing based on the local neighborhood market conditions and your mortgage balance is always changing based on mortgage payments.Keeping track of the difference is your home equity, which keeps you informed and ready for the right time to re-sell.” John Bodrozic, Co-founder of HomeZada Final thoughts: benefits of renting your home “I had a nice home in a suburban neighborhood and decided to move into a downtown atmosphere, so I rented out my home to move into a rental. In order to make this decision I had to consider the current rental market and weigh that against my own financial goals. In my case, I could have sold the home for a small profit, or rent out the property and have a small deficit at the end of each month. I made the decision to rent because I felt that my original neighborhood was still rebounding from the drop in 2008 and equity was still building. Would I put $200 a month into a savings account or keep building that equity? This was the question I considered. I am a big proponent of keeping real estate whenever possible. The cost to sell a property can be significant and eat into your profits if you move too often. These should be considered and as long as you are working on paying down the mortgage and comfortable being a landlord — why sell it? Especially when many of your other options are low-interest savings accounts.”  Teris Pantazes, CEO and Co-founder of EFynch “I spent the last 19 months writing about my experience as a homeowner turned accidental landlord due to the housing crisis. I had to move but couldn't sell at the time, so I decided to become a landlord and I have had absolutely no regrets! It's a been a great learning experience, and I have since expanded my portfolio.   My advice to people considering this strategy is to first run the numbers and see if it makes sense. Not every property can be a rental. Second, take stock of your abilities. Do you have the skills and mindset to treat it like a business? Because that's what it will be. It is no longer your home. It is a business.”  Domenick Tiziano, Blogger at AccidentalRental